Victoria's Secret is "outdated", and Vezhani can't save it

Edit | Yu Bin

Produced | Chaoqi.com "Yu See Column"

In recent years, the global underwear market has ushered in a huge change. With the end of the "sexy" label of traditional underwear, the underwear consumer market is developing in the direction of sports and comfort. As a result, it is naturally the influence of traditional underwear brands and the rise of emerging underwear brands.

As a result, Victoria, which once appeared on the peak of the underwear industry with sexy characteristics, no longer grasped the right to speak, but instead has won huge growth space in the underwear market in Lululemon, Anta, and Li Ning.

Especially for Victoria's Secret, which was once famous, it has become a trend of "tears in the times."

Beginning in 2015, Victoria's secrets have gradually revealed the slump. Since then, by 2017, Victoria's Shanghai Da Show unveiled the real situation under its rivers and rivers with a sharp decline in ratings. By 2019, the Victoria's Secret Show, which was once popular all over the world, was simply canceled.

Beginning in 2020, under the influence of the global epidemic, the situation of Victoria's secret is worse, and even the market that the company will go bankrupt.

Since then, after a difficult acquisition doubt has not been successful, the L Brands company of Victoria's Secret has chosen to go public and began to implement reform within the company. Promote performance.

Especially in the Chinese market, Wei Mi also chose the strategy of holding hands in hand in hand. It set up a joint venture with Chinese underwear giant Vizhini in the early years of this year. The dimension and other dimensions also reflect different styles from the past.

So, can various reforms, especially in the Chinese market, to operate Vizes together in the Chinese market to help this old underwear brand come out of the "outdated" quagmire? Can Vizoni save Victoria's Secret under the rivers and rivers?

Vizes on the front desk, Wei Mi embraced the localization of China

What many people should not know is that now in China, the brand of Victoria's Mi has really owned the localization of China's localization.

In April of this year, Vizoni, who had a good influence in the field of global underwear, acquired 49%of the equity of Victoria's Chinese business at a price of $ 45 million, which made Vezhi's start to attract a lot of attention.

It is worth noting that well -known fashion brands, including Victoria's Secret, Nike, Uniqlo, Lululemon and other well -known fashion brands, were originally an important customer of Virgini. Now it chooses to go from the foundry to the front desk and transform from Party B to Party A. Cause multiple discussions.

It is reported that before the acquisition of nearly half of the equity of Victoria's Chinese business, Vizoni showed his determination to cultivate his brand. After 2011, it tried to launch two own underwear brands. Unfortunately, the development was unsatisfactory. In the end, the "heart" of its own brand fell into cooperation with Victoria's China.

In fact, the combination of Vili+Vizoni looks very complementary.

On the one hand, the Chinese market is one of the most important markets of Victoria's Mizi in the world. With the joint stock of Vezhani, a local foundry, it can help Victoria's Mipity further deepen China's localized brand operation and use better understanding of the Chinese people's occupation to further further further understand the Chinese people's occupation. Digging the potential value of the Victoria's secret brand; on the other hand, Vezhani does not need to build its own brand from 0 to 1, and the brand awareness "explosive watch" can be used.

However, whether the combination of the two can achieve the effect of 1+1 greater than 2, it takes time to test. Although the performance of Victoria's Secret recently has improved compared to the previous beginning, its influence in the underwear market is that in the final analysis, even if Vizoni may have a high probability that it may not be able to reverse this slump.

In addition, Vezhn's tentacles to Vemi are not necessarily all good news.

As a founding factory of Victoria's Secret, the combination of it and Victoria's Michelon is likely to make other customers dissatisfied, which brings some competition problems. After all, Vezhani has many other underwear brands as underwear factories.

The performance of the capital market proves this. After the acquisition of Victoria's Chinese business, Vezhani's stock price has not ushered in the rise, but continues to fall, which shows that investors also uphold the attitude towards this acquisition.

It is not so much acquisition, it is better to protect itself

It should be pointed out that, in view of the big customer relationship between Victoria's and Virgini, the combination between the two is not so much that Virgini is acquired at the brand building level. More practical.

With the decline of the influence of the Victoria's brand in the underwear market, Vezhani bought it has a more complicated and deep -seated reasons.

From the perspective of Wizard, its performance in recent years is almost correlated with Victoria's performance, because its dependence on large customers such as Victoria's Secret.

In fiscal in 2015, Vezhany's nearly 70 % revenue was contributed by the top five customers of the company. Among them, the LBRAND company behind Wei Mi contributed more than 30 % of its revenue.

Since then, although Virgini has been trying to get rid of this model that is limited by foundry and a single customer structure, the effect seems to be average.

From fiscal 2015 to 2021, Vizoni's revenue increased very limited, but the scale of revenue of HK $ 4.192 billion increased slightly to HK $ 5.974 billion, and the net profit performance was very average. The decline in net profit, decline in net interest rates, and decline in net profit growth is the main theme. These performances are largely attributed to the company's too dependent on big customers, and everyone knows the performance of large customers such as Wei Mi over the years.

Interestingly, Vezhanie is currently promoting the company's customer structure towards sports brands such as Uniqlo, Nike, Lululemon, etc. This shows that the company also foresees the traditional underwear market. It hopes to use customer changes to maintain its future growth.

But at this time, Virgini chose to be binded in depth with Victoria's Secret, which has to make people suspect that Vegetarian orders still have great importance to Vezhani's performance. The other party protects himself.

Then the question is, on the one hand, you are not optimistic about the traditional underwear market, and on the other hand, you will choose the "Big Brother" Victoria Mi, who is a new identity of the traditional underwear brand. Come to better market performance?

If the decline of Victoria's Secret cannot be avoided or the Chinese underwear market will no longer pay for Victoria's Mi, the combination of Vizes and Victoria will have a profound impact, and Vezhani's performance may also suffer a crisis. What will happen in the future? I can only wish Vegetarian and Virgini good luck.

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